Crane Company has the following merchandise account balances at its September 30 year end:Cost of goods soldDelivery expenseMerchandise inventorySalaries expenseDateSept. 30$120,000Sept. 302,30022,00040,000SalesSales discountsSales returns and allowancesSuppliesPrepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indentedwhen the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.List all debit entries before credit entries.)Account Titles and Explanation|$187,500(To close income statement account with credit balance.)9703,1002,300DebitCreditTOU

The journal entries that are made to close out temporary accounts and get them ready for the…

Answered: Crane Company has the following…

Crane Company has the following merchandise account balances at its September 30 year end: Cost of goods sold Delivery expense $120,000 2.300 Sales Sales discounts $187,500 970

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 21GI: Indicate the effect of each of the following errors on the following balance sheet and income...

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Question

Crane Company has the following merchandise account balances at its September 30 year end:
Cost of goods sold
Delivery expense
Merchandise inventory
Salaries expense
Date
Sept. 30
$120,000
Sept. 30
2,300
22,000
40,000
Sales
Sales discounts
Sales returns and allowances
Supplies
Prepare the entries to close the appropriate accounts to the Income Summary account. (Credit account titles are automatically indented
when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.
List all debit entries before credit entries.)
Account Titles and Explanation
|
$187,500
(To close income statement account with credit balance.)
970
3,100
2,300
Debit
Credit
TOU

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